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Crypto Exchanges

How To Detect Suspicious Crypto Exchanges

By | Cryptocurrency | No Comments

The entire crypto market has been on a fast uptrend this past week with the recovery of bitcoin. For crypto traders, choosing the right crypto exchange platform to trade on is equally as important as choosing the right asset to have in your portfolio. With recent catchy news headlines about “suspicious exchanges” and “fake volumes,” the public has long speculated that exchanges have manipulated the crypto market. As easy as it is to be swayed by sensationalized headlines, how can crypto traders objectively look for suspicious exchanges by themselves?

Using Technical Data to Spot Abnormal Trends

In the following section, we will share examples of how to use our team’s tools and research – like our Coinscious Terminal and exchange reports – to learn how to detect suspicious exchanges on their own.

a) Real-time Analytics

We start by analyzing Figure 1 which shows huge spikes in Bitcoin volume and price pump that occurred on April 2, 2019.

Figure 1. Price of Bitcoin (BTC) in USD at Bitfinex on April 2, 2019 at 7 A.M. EST.

Crypto Exchanges

We can look at volume changes directly from our Coinscious Terminal for the top 18 mainstream exchanges. The data table in Figure 2, shows volume changes on April 2 for the top ten exchanges in blue. There are very drastic volume changes greater than 70% for all exchanges listed, except for Fcoin. Fcoin only had a 10% volume change, indicating that crypto traders should be wary of trading on this exchange as it is most likely faking its volume.

Figure 2. Top 10 crypto exchanges by ranked 24-hour volume on April 2, 2019 from: https://terminal.coinscious.io/exchange/

b) Historical Data

Next, we will analyze a plot of ETH/BTC daily volume for the same 18 crypto exchanges between January 16 to February 16, 2019 from our exchange report. In Figure 3, ZB is the only crypto exchange with an exchange volume curve that sticks out to the far-right. What exactly is going on here?

Figure 3. ETH/BTC pair daily volume for each exchange from February 16, 2019 to March 16, 2019 in USD.

Crypto Exchanges

We can further analyze this anomaly by using principal component analysis (PCA) and plotting exchanges based on the first two principal components, PC1 and PC2. From the plot in Figure 4, we can see several crypto exchanges clustered together at the bottom-left. These represent exchanges that are correlated with one another and hence, follow similar volume trends. Conversely, there are clear outliers like Binance, Fcoin, HitBTC, HuobiPro, OKEx, and ZB. These outlier exchanges have volume trends that diverge from the market mean.

Figure 4. PCA volume analysis for ETH/BTC. The biplot, where the two main principal components are used to represent the exchanges, allows us to identify clusters or groups of exchanges that might be correlated according to volume.

Crypto Exchanges

We can even take this one step further and use a more quantitative way of measuring, by looking at volume correlations between exchanges. In the green box in Figure 5, all the intersections coloured in bright orange means that these exchanges are positively correlated; they follow similar crypto market trend patterns.

Figure 5. Daily volume correlations between exchanges from February 16, 2019 to March 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Crypto Exchanges

The exchanges in the blue box, with intersections coloured in red and black are anti-correlated to the exchanges in the green box. Therefore, this means that bitFlyer, Fcoin, HitBTC, Zaif and ZB have volume trends that go against those exchanges in the blue box listed on the x-axis.

What’s really interesting are the exchanges in the yellow box. Some of these exchanges have no correlation to one another while others have negative correlations. An explanation for this may be due to different trading bot algorithms that run on each exchange. Since they have different algorithms, this creates no correlation or negative correlations between the exchanges.

c) Additional Research

This March, Bitwise Asset Management released a report to the SEC highlighting the problems and common misconceptions of crypto exchanges. Bitwise’s study reveals that “95% of volumes is fake and/or non-economic in nature, and that the real market for bitcoin is significantly smaller” [1].

By looking at the shape of trade size histogram distributions, they compare crypto exchanges that follow a natural exponential decay pattern (Figure 6a) versus suspect exchanges that have highly irregular shapes (Figure 6b). Their findings indicate that there are only 10 well-known exchanges that have actual volume including: Binance, Bitfinex, bitFlyer, Bittrex, Bitstamp, Coinbase, Gemini, Kraken, itBit, and Poloniex.

Figure 6a. Trade size histograms for well-known exchanges that show natural patterns

Crypto Exchanges

Figure  6b. Trade size histograms for suspect exchanges that show irregular patterns.

Crypto Exchanges

Developing Stronger Technical Skills

Technical data is crucial for understanding the nuances of the existing crypto market. All of the examples above demonstrate how simple it is to identify outliers and suspicious exchanges once crypto traders know how to read and interpret technical analyses. By providing direct access to our team’s analysis, tools and accurate data, we make it easy for crypto traders to have all the necessary means to succeed. In doing so, crypto traders no longer need to make decisions solely based on catchy headlines but rather, they can discover fairer and more reliable crypto exchanges based on objective data-driven insights.

Learn More

This helpful guide is extracted from our CTO & Co-Founder, Daniel Im, and his presentation “Crypto Market Analysis, Analysis Tools & Data.” Watch the full presentation to discover tools to help build stronger portfolios and learn how to backtest strategies.

Resources

Find out more about all the tools and resources we highlighted in this article:

REPORT SERVICE

  • Exchange Report: an analysis of recent historical volumes and prices of 18 mainstream exchanges to identify better or fairer cryptocurrency platforms. SUBSCRIBE NOW
  • Market Report: an analysis of recent historical performances of the top 50 assets to identify current cryptocurrency market trends. SUBSCRIBE NOW

TERMINAL

  • Coinscious Terminal: real-time analytics on the top 100 coins/tokens, 18 mainstream crypto exchanges, and top technical trading indicators

SIGN-UP NOW FREE:   MARKET DATA API   |  ALERT APIREPORT SERVICES

Reference

[1] Bitwise Asset Management. “Presentation to the U.S. Securities and Exchange Commission.” 2019, www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5164833-183434.pdf

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Crypto Market Recoveries

By | News | No Comments

📝 Bakkt Ready To Test Bitcoin Futures This July

MONDAY, MAY 13, 2019

Bakkt, the crypto initiative by Intercontinental Exchange (ICE) which was first announced August 2018 is ready to launch testing for bitcoin futures trading July 2019. In their Medium post, Bakkt announced they will be working closely with ICE Futures U.S. Exchange, ICE Clear U.S. clearinghouse to ensure a successful launch as well as the United States Commodity Futures Trading Commission to be complaint with federal regulations. 

SOURCE: COINTELEGRAPH


🚦Binance To Reopen Deposits & Withdrawals On Tuesday

MONDAY, MAY 13, 2019

Cryptocurrency exchange, Binance, will resume deposit and withdrawal services this Tuesday. The platform suffered a major hack on May 7, resulting in the theft of 7,070 bitcoins (worth $40 million) from the exchange’s hot wallets. In their official announcement, CEO, Changpeng Zhao (CZ), shared the team has been working on adding a number of advanced security features with more details to be provided shortly. 

SOURCE: COINDESK


🐋 Blockchain Watch

MONDAY, MAY 13, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

[VIDEO] Crypto Market Analysis, Analysis Tools and Data

By | Cryptocurrency, Videos | No Comments

As part of this year’s Toronto Blockchain Week, Coinscious hosted Crypto Market Analysis & Insights.” During this record turnout event, we showcased speakers and panelists from a wide range of backgrounds –  cryptocurrency, blockchain, banking, government, legal and investment – to share their insights and unique perspectives on the current crypto market. This exciting opportunity allowed us to provide a wealth of knowledge to the general public which would otherwise only be reserved to members of those respective industries.

One important presentation from the evening, was by our CTO & Co-Founder, Daniel Im, who presented “Crypto Market Analysis, Analysis Tools and Data.” As a crypto data and analytics provider, our team has built a suite of tools and services to help cryptotraders, at all levels of trading, to maximize their strategies to obtain the highest returns. Challenges in the existing crypto market – like volatility and fake exchange volumes – can hinder strategies if cryptotraders do not have access to useful resources and accurate crypto data to overcome them.

In the video above, we share Daniel’s presentation as a chance to provide guidance to all cryptotraders on how to better determine: where to trade, what to trade and how to practice/backtest their trading strategies, all by simply using our data, tools and resources. For example, from our exchange reports, Daniel demonstrates how cryptotraders can identify outliers from technical data and shows ways to look for suspicious exchanges by using our volume correlation data. He also highlights how to use our market reports in conjunction with our Market & Trading Strategy Terminal to decide which coins/tokens to have in your portfolio based on risk versus return data and performance analytics.

Watch the full video to learn more about how to best pair our crypto data products and services with your trading needs. Check out:

REPORT SERVICE

  • Market Report: an analysis of recent historical performances of the top 50 assets to identify current cryptocurrency market trends. SUBSCRIBE NOW
  • Exchange Report: an analysis of recent historical volumes and prices of 18 mainstream exchanges to identify better or fairer cryptocurrency platforms SUBSCRIBE NOW

TERMINAL

DATA SERVICE

  • Market Data API: the most accurate and comprehensive raw crypto market VWAP, OHLCV, trade and order book data. Try our live stream API free. SUBSCRIBE NOW

Technical data is crucial for understanding the nuances of the existing crypto market. However, data is difficult to collect and interpret without the right resources and know-how. By providing direct access to our team’s research analysis, analysis tools and data, we make it easy for cryptotraders to have all the necessary means to succeed. We hope that through this video, cryptotraders can learn how to best apply these objective methods towards building a stronger portfolio. In doing so, cryptotraders no longer need to make decisions solely based on sentiments but rather, they can discover and improve existing strategies based on objective data-driven insights.

SIGN-UP NOW FREE:   MARKET DATA API   | REPORT SERVICES

Investigating Crypto Exchange Price & Volume Patterns

By | Coinscious Lab, Data Analytics, Exchange Report | No Comments

Overview

Released monthly, this report aims to analyze and characterize cryptocurrency exchanges according to their volume for the past month, this time from February 16, 2019 to March 16, 2019.

Our universe of analysis uses public exchange data from 18 of some of the most popular exchanges1 (see Figure 1). Through analysis of the recent historical volume and price of individual exchanges we provide a framework for analysis where investors can identify better or fairer exchanges.

Using daily volume data from some of the most widely used cryptocurrency exchanges, we were able to cluster exchanges into three groups based on similarity in volume trends. Some of our findings include the following:

  • OKEx and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Although OKEx has reported the biggest traded volume between February 16, 2019 to March 16, 2019, PCA analysis separates it from the other top exchanges (i.e. Binance and HuobiPro), and shows a low correlation with the market in terms of traded volume.

Performance

Figure 1. Total monthly volume, mean daily volume, max daily volume, mean hourly volume and max hourly volume for each exchange from February 16, 2019 to March 16, 2019 in USD. Monitor exchange performance daily through our Market & Trading Strategy Dashboard: dashboard.coinscious.io

According to the public exchange data, OKEx has reported the biggest mean daily and hourly volume for the past month.

In the past month, OKEx took first place with a total of $28 billion traded between February 16 to March 16, compared to $25 billion for ZB (2nd) and $20 billion for Binance (3rd) (see Figure 1).

We chose ETH/BTC trading pair to analyze exchange volumes in more depth. ZB traded volume for ETH/BTC was the highest overall, following the trend described in our previous Exchange Report. However, OKEx took first place on March 5 when its volume changed from $78 million to $107 million in a single day. It remained at the top spot until March 12, when its volume dropped back down to $39 million; ZB retook first place. Interestingly, according to BeinCrypto, on March 5 ethereum’s price began to increase rapidly from $130 throughout the earlier part of the day, and reached a daily highly of $143.83 on March 6 [1].

Figure 2. ETH/BTC pair daily volume for each exchange from February 16, 2019 to March 16, 2019 in USD.

Observations

The cryptocurrency market was on an uptrend starting from the morning of Wednesday, April 3, 2019 – the price of BTC went up from $4,000 to $4,800. In fact, because of the BTC pump, we observed that there were huge volume changes for all exchanges except Fcoin; their volume changes remained low.

Figure 3a. Top 10 crypto exchange volume changes on April 3, 2019.

As you can see in Figure 3a, the top 10 exchanges have 1-day volume changes ranging between 73.35% to 315.18%. However, Fcoin is the only exchange with a much lower volume change of 9.25%.

Three days later, on the morning of Saturday, April 6, 2019, the market started to slow down and became tranquil. Again, we can observe this from 1-day volume changes in Figure 3b, where most of the exchanges’ volume changes decreased to around 22-60%. Nevertheless, Fcoin and HitBTC volume changes were up by 18% and 19% respectively.

Figure 3b. Top 10 crypto exchange volume changes on April 6, 2019.  

These strong indications reveal that Fcoin (and possibly HitBTC) is likely faking its volume. The next section delves into a deeper analysis and looks at which specific exchanges violate volume trends in comparison to all exchanges overall.

Analysis

In order to categorize exchanges and investigate their trends during the past month, we performed a dimensionality reduction analysis using PCA2 for ETH/BTC pair daily volume. By plotting crypto exchanges according to their first two principal components, we identified a cluster and some outliers (see Figures 3a and 3b). The two first principal components explain more than 80% of the variance in our data set and the relative position along the x- and y-axes indicate similarities between exchanges in terms of traded volume. Thus, exchanges clustered together present similar volume trends, while outliers, namely Okex, HuobiPro, Binance, Fcoin, HitBTC, and ZB, show trends that diverge from the market mean.

If we zoom in on the market mean, we can identify subgroups of exchanges that are closely related inside the market mean (Figure 3b).

Figure 3a. PCA Volume analysis for ETH/BTC. The biplot, where the two main principal components are used to represent the exchanges allows us to identify clusters or groups of exchanges that might be correlated according to volume.

Figure 3b. PCA Volume analysis excluding outliers in the first analysis.

To understand the meaning of the two principal components and characterize the outliers, we decided to look at correlation between exchanges. We used volume for the ETH/BTC pair to identify a general trend in the market and determine whether exchanges follow or are against the trend (see Figure 5). Although most exchanges show a similar trend (that is, they follow a similar daily volume trend), OKEx, Bitflyer, BigOne and HitBTC show a daily volume trend that goes against the market. Interestingly, ZB and Zaif follow the mean market trend this time. Also note that compared to the PCA biplot using daily volume data from January 16 to February 16, OKEx and ZB have swapped positions (see Figure 3 from the previous Exchange Report)

Figure 5a. Top 5 negative volume correlations

Figure 5b. Top 5 positive volume correlations

Figure 6. Daily volume correlations between exchanges from February 16, 2019 to March 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

OKEx, in particular, shows negative correlations with all exchanges except for HitBTC and HuobiPro. This suggests that OKEx, Bitflyer, HitBTC and BigONE are acting against the market.

Again, Upbit and Bittrex show the highest correlation for all exchange pairs, suggesting that they share the same order book [2]. This was also noted in our previous Exchange Report.

To explore what other factors could contribute to the clustering in different groups after Volume PCA, we calculated the correlation between ETH/BTC price and volume for every exchange pair (see Figure 6).

Figure 7. Daily price-volume correlations between exchanges from February 16, 2019 to March 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

OKEx and HitBTC stand out as exchanges with the highest negative correlation between ETC/BTC price and volume for all exchanges. This shows that not only their volume, but also their ETH prices go against the market. While most exchanges show a positive trend (higher volumes associated with higher prices), OKEx, HitBTC, HuobiPro and BigOne show a negative trend (higher volumes associated with lower prices, and vice versa).

Summary

Using daily volume data from 18 of some of the most widely used cryptocurrency exchanges and principal component analysis, we identified three clusters of exchanges sharing similar volume trends. We mainly looked at volume correlations and price-volume correlations. Our findings include:

  • Okex and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Although Okex has reported the biggest traded volume in the past month, PCA analysis separates it from the other top exchanges (i.e. Binance and HuobiPro) and shows a low correlation with the market in terms of traded volume.

Here, these findings are simple observations of possibly correlated variables. We share this from the point-of-view of something to look out for. Overall, our exchange analysis has proven useful to study patterns of volume and price activity in the market and identify potential manipulation, that could be confirmed using blockchain data.

Footnotes

1 The scope of this report does not cover futures contracts.

2 PCA is a technique that finds underlying variables that best differentiates your data points. In this article, we visualize and analyze along the two dimensions which the data points varies the most (see Appendix B).

APPENDIX A: Methodology

The daily volume of cryptocurrencies in USD at 4:00 PM EST from February 16, 2019 to March 16, 2019 was used for our volume ranking. Daily volume and price for the pair ethereum_bitcoin was used for the same time period for the PCA analysis and correlation analysis. Price and volume were normalized such that its distribution had mean value 0 and standard deviation of 1 in order to perform principal component analysis and calculate price-volume correlations. In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX B: Terminology

  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.
  • PCA: A statistical procedure that uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components, in order to maximize the explained variance.

References

[1] T. (2018, December 11). Binance Losses Top Cryptocurrency Exchange Position to OKEX and ZB.Com. Retrieved from https://coingape.com/

[2] Lavere, M. (2019, February 13). Ethereum (ETH) Mining Reward Hits Lowest Ever.  Retrieved from https://ethereumworldnews.com/

[3] Bitking74. (2017, October 24). UPbit and Bittrex are sharing the same order book. This is a win win for both sides: bring some Korean liquidity to Bittrex, also the Korean users start with nicely filled order books from Bittrex. Go NEO. Neotrader [Online forum]. Retrieved from https://www.reddit.com/r/Neotrader/comments/78fztu/upbit_and_bittrex_are_sharing_the_same_order_book/

[4] J. (2018, September 18). Chinese Investor Loses 700,000 Yuan Due To Fcoin Crypto Manipulation. Retrieved from https://www.coindaily.co/

[5] Sillers, A. (2018, September 12). The evidence of OKex’s fraudulent behavior, which may point to HitBTC as well. Retrieved from https://www.chepicap.com/

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Crypto Cheers & Controversies

By | News | No Comments

⚖ FinCEN Penalizes Its First P2P Currency Exchanger

FRIDAY, APRIL 19, 2019

For the first time, the United States Financial Crimes Enforcement Network (FinCEN) has penalized a peer-to-peer (P2P) cryptocurrency exchanger for breaking anti-money laundering (AML) rules. FinCEN announced that the individual, Eric Powers, operated an unregistered money services business, did not have any written policies and procedures for compliance to the Bank Secrecy Act (BSA), and failed to report and suspicious transactions. 

SOURCE: THEBLOCKCRYPTO


?? Coinnest Shuts Down

FRIDAY, APRIL 19, 2019

Coinnest, South Korea’s third largest cryptocurrency exchange, announced it will be officially closing down. The decision comes as a result of the exchange struggling to cope with changes in the cryptocurrency and blockchain industries. They advised users will need to withdraw any funds on its platform by April 30

A few controversies the exchange experienced dealt with in the past year may be cause for its shut down. This January, the exchange reportedly lost $5 million worth in bitcoin and other digital assets, due to a mistaken airdrop. Last year, a top-level executive from Coinnest were arrested by Korean law enforcement agents and later convicted for fraud. 

SOURCE: COINDESK


? Self-Proclaimed Bitcoin Creator Sues Podcaster for Libel

FRIDAY, APRIL 19, 2019

Craig Wrightthe self-proclaimed creator of bitcoin, has sued podcaster Peter McCormack, of What Bitcoin Did, for libel. Wright accuses McCormack of denying he is Satoshi Nakamoto and is seeking nearly $130,000 in damages.

SOURCE: CCN


? Bakkt Eyes New York Licence For Crypto Custody

THURSDAY, APRIL 18, 2019

Intercontinental Exchange (ICE) –  the owner of the New York Stock Exchange – is reportedly eyeing a New York license for its long-delayed crypto exchange Bakkt. The launch of Bakkt has been delayed by over five months due to scepticism from the Commodity Futures Trading Commission (CFTC) over concerns of how clients’ tokens, linked to bitcoin futures, will safely be stored.

SOURCE: BLOOMBERG


⛓ Binance Chain Launches

THURSDAY, APRIL 18, 2019

Binance has officially launched its mainnet Binance Chain. The cryptocurrency exchange announced it will activate its native token, BNB, on the new network on April 23, allowing token holders to migrate their balances. In order to maintain a constant supply on both networks, old ethereum-based tokens will be destroyed as new BNB tokens are created on Binance Chain.

SOURCE: COINTELEGRAPH


⚖ Winklevoss Brothers Settle $26M Bitcoin Lawsuit

WEDNESDAY, APRIL 17, 2019

Cameron and Tyler Winklevoss have finally settled their lawsuit with Charlie Shrem, a bitcoin supporter and entrepreneur. Shrem claimed the Winklevoss twins owed him $26 million dollars worth of bitcoin. The U.S. District Court for the Sourthern District of New York announced a settlement has been reached by both parties. Both parties will have the right to reopen the case and proceed the trial within 30 days. 

SOURCE: BITCOINEXCHANGEGUIDE


? Coinbase Expands Crypto-to-Crypto Services to 11 Countries

WEDNESDAY, APRIL 17, 2019

U.S.-based cryptocurrency exchange, Coinbase, introduced its Coinbase Pro trading platform to 11 more countries in Latin America and Southeast Asia including: Argentina, Mexico, Peru, Colombia, Chile, India, Hong Kong, South Korea, Indonesia, the Philippines, and New Zealand.  The company announced that crypto-to-crypto trading is now available to users in 53 countries. 

SOURCE: COINTELEGRAPH


?? Rakuten Opens Crypto Wallet Registration

WEDNESDAY, APRIL 17, 2019

Japanese e-commerce giant, Rakuten, has started accepting account registrations for its upcoming cryptocurrency wallet, Rakuten Wallet. The company announced that users who have an account with Rakuten Bank or who already have a Rakuten member ID can sign-up prior to the official trading launch this June. 

SOURCE: COINGEEK


❌ Kraken Delists Bitcoin SV Following Community Poll

TUESDAY, APRIL 16, 2019

Kraken, the U.S.-based cryptocurrency exchange, set up a Twitter poll yesterday, asking its users whether it should delist bitcoin SV. Voters took to the polls and it was a 71% majority in favour of delisting the asset. Kraken’s decision follows in the footsteps of Binance, who dropped the coin earlier this week due to its founder’s “antiethical behaviour.”

SOURCE: COINTELEGRAPH


? USDT Launches on Tron Network

MONDAY, APRIL 17, 2019

Tether has begun issuing its USD-pegged stablecoin, USDT, on the Tron‘s TRC-20 protocol. The development is an upgrade from the OMNI protocol-based USDT. Existing users of USDT can directly convert their tokens to USDT-Tron by contacting Tether or through exchanges. The network intends to allow zero fee transactions for the new coin.

SOURCE: COINGAPE


❌ Binance Delists Bitcoin SV (BSV)

MONDAY, APRIL 17, 2019

Changpeng Zhao (CZ), the CEO of cryptocurrency exchange, Binance, has announced it is delisting bitcoin SV (BSV) starting April 22. The decision was made due to controversy around BSV’s founder, Craig Wright, who’s proclaimed he is the pseudonymous creator of bitcoin, Satoshi Nakamoto. Wright has been unrelenting on Twitter, attacking users who refute his claim. CZ earlier warned Wright that he would delist the altcoin if he did not change his behaviour; Wright did not heed his threats.  

SOURCE: COINDESK


?  Blockchain Watch: Oh Whale

FRIDAY, APRIL 19, 2019
THURSDAY, APRIL 18, 2019
WEDNESDAY, APRIL 17, 2019
TUESDAY, APRIL 16, 2019
MONDAY, APRIL 16, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Official Crypto Beginnings & Ends

By | News | No Comments

? Binance Labs Grants $45K To Three Blockchain Projects

FRIDAY, APRIL 12, 2019

Binance Labs, a venture arm of cryptocurrency exchange Binance, granted $15,000 to each of its first 3 open-source Fellowship projects:

  • Ironbelly: a mobile crypto wallet from Grin blockchain,
  • HOPR: a privacy-preserving messaging protocol, and
  • Kitsune Wallet: an upgradeable on-chain wallet.

Binance Labs Fellowship helps fund and support open-source development projects that contribute and have infrastructure value to the blockchain ecosystem.

SOURCE: CRYPTONINJAS


? WikiLeaks Receives BTC Donation Worth $20,000

FRIDAY, APRIL 12, 2019

WikiLeaks leader, Julian Assange, was arrested by United Kingdom police for extradition to the United States. Assange has sought asylum since 2012 at the Ecuadorean embassy in London, but Ecuador recently withdrew this status. 

Since Assange’s arrest, WikiLeaks has plead for donations from the public to contribute to its official defence fund. The fund has received $20,000 worth of bitcoin at the time of this writing. 

SOURCE: DAILYHODL


? Coinbase Vice President Leaves After 5 Years

FRIDAY, APRIL 12, 2019

Coinbase, the U.S.-based cryptocurrency exchange, will say goodbye to executive and vice president, Dan Romero, at the end of this month. Romero has been with the company since 2014 when there was only 20 employees; they now have over 700.

The announcement was officially made through Coinbase’s Medium account, but does not share any specific reason for his departure. A total of nine senior and mid-level employees have left Coinbase since its fundraiser October of 2018. 

SOURCE: COINDESK


? Bakkt Hires Former Paypal & Google Exec For New Chief Product Officer

THURSDAY, APRIL 11, 2019

Bitcoin futures exchange, Bakkt, has introduced their new Chief Product Officer (CPO), Mike Blandina, a former Paypal and Google senior engineer executive. Bakkt CEO, Kelly Loeffler, announced that Mike will lead efforts to “converge a trusted ecosystem for digital assets with payment use cases.”

SOURCE: COINTELEGRAPH


? 5th MakerDAO Poll To Increase in Stability Fee

THURSDAY, APRIL 11, 2019

Users of MakerDAO‘s stablecoin, DAI, are taking to the polls for the fifth vote this year to further increase the stability fee another 4%; a total increase of 11.5% per year if approved. The polls end today at 5 PM UTC and the majority so far is in favour of the increase. DAI is an ERC-20-based stablecoin pegged 1:1 with the USD via issuance of Maker-administered collateralized debt positions. 

SOURCE: COINTELEGRAPH


?? China To Proposes New Policy on Crypto Mining

THURSDAY, APRIL 11, 2019

China’s National Development and Reform Commission (NDRC) has published a draft proposal looking to restrict and/or eliminate virtual currency mining. It does not outright specify that mining should be banned, but says it’s necessary to control as the current industry heavily relies on fossil fuel energy which leads to increased environmental pollution. 

Half of all existing bitcoin mining operations occur in China. If the proposal were to become policy, it will not only alter environmental impacts of bitcoin mining, but also decentralised mining efforts: wider hash rate distribution, stronger network, and new mining locations using renewable energy.  

SOURCE: NEWSBTC


? Coinbase Card Launches in the U.K.

WEDNESDAY, APRIL 10, 2019

Cryptocurrency exchange, Coinbase, has launched Coinbase Card to allow users in the United Kingdom to spend cryptocurrencies in-stores or any online website. The card itself is a Visa card that works with any merchants on the Visa network.

Coinbase has also released a Coinbase Card mobile app to manage crypto balances. Users can directly access cryptocurrencies from their account, without needing to transfer assets from the main to card app. The card costs $6.50 and every transaction costs 2.49% in fees (1.49% conversion fee plus 1% transaction fee. 

SOURCE: TECHCRUNCH


❌New York Rejects BitLicense Application by Bittrex

WEDNESDAY, APRIL 10, 2019

Seattle-based cryptocurrency exchange, Bittrex, was rejected by the New York Department of Financial Services (NYDFS) on their application for a  BitLicense. The NYDFS published a formal letter outlining all of the factors and deficiencies that contributed to their decision. This included Bittrex’s: inadequate BSA/AML/OFAC compliance program, inadequate coin/token due diligence, inadequate capital, and more. 

Bittrex has released their official statement in response to the NYDFS’ decision. The company has stated that at this time, they are unsure if they will reapply for the BitLicense. 

SOURCE: COINDESK


? Mt. Gox Creditors Leader Leaves Post

TUESDAY, APRIL 9, 2019

Founder and coordinator of Mt. Gox Legal, Andy Pag, has stepped down from the organized creditor group. Pag spearheaded the group 18 months ago with the intention of advocating for the reimbursement of creditors of the now defunct cryptocurrency exchange, Mt. Gox. Fast forward to today, Pag has shared in an interview that he believes ongoing legal issues – especially with former startup partner Coinlab – may hold up the civil rehabilitation process for up to two more years. 

SOURCE: COINDESK


? Western Union Partners With Digital Wallet

TUESDAY, APRIL 9, 2019

Money transfer giant, Western Union, has partnered with digital wallet provider, Coins.ph, to expand cross-border transfers to the users in the Philippines. Users can receive and hold international money transfers from Western Union’s digital and retail networks in more than 60 and 200 countries respectively. 

SOURCE: COINSPEAKER


✂ Bitfinex Removes Minimum $10K Balance Requirement

TUESDAY, APRIL 9, 2019

Cryptocurrency exchange, Bitfinex, has removed its $10,000 minimum equity trading requirement. On their official blog, they advised the update is in response to increasing level of requests for access to trade on the exchange from a wide variety of traders. To support their new wave of customers, the company has redesigned their support centre, created a new KYC portal, and will start offering sentiment analysis for supported coins/tokens.

SOURCE: COINTELEGRAPH


⚖ QuadrigaCX Officially Declares Bankruptcy

MONDAY, APRIL 8, 2019

On Monday, the Nova Scotia Supreme Court ruled that the Canadian-based cryptocurrency exchange, QuadrigaCX, will be entering bankruptcy. Since the end-of-January, QuadrigaCX has been operating under the Companies’ Creditors Arrangement Act (CCAA) to get assistance reclaiming access to funds located in cold wallets. Currently, the company owes 115,000 users more than $195 million worth in both cryptocurrency and fiat.

SOURCE: COINDESK


?  Blockchain Watch: Oh Whale

FRIDAY, APRIL 12, 2019
THURSDAY, APRIL 11, 2019
WEDNESDAY, APRIL 10, 2019
TUESDAY, APRIL 9, 2019
MONDAY, APRIL 8, 2019
SUNDAY, APRIL 7, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Crypto Exchanges: Make It Or Break It

By | News | No Comments

? Ripple Partners with $19 Billion Bank

FRIDAY, MARCH 29, 2019

Ripple Inc., has partnered with India-based commercial bank, Federal Bank to offer blockchain solutions for cross-border remittances. At the moment, it’s unclear whether cryptocurrency will be directly related as fiat to crypto trading is illegal in India. Federal Bank is estimated to be worth $19 billion dollars with access to 8 million customers. 

SOURCE: ETHEREUMWORLDNEWS


? FINMA Affirms Envion AG’s ICO Was Unlawful

FRIDAY, MARCH 29, 2019

Switzerland’s Financial Market Supervisory Authority (FINMA), has found Envion AG‘s ICO launch last July 2018 to be illegal. In their official report, it was discovered that the company accepted funds – in the form of bitcoin, ethereum, and USD – from over 37,000 investors and amounted to over 90 million francs.  

Envion was pitched as decentralized, clean energy for mobile mining units. EVN tokens were issued on cryptocurrency exchanges to its investors. The company has since been taken over by the Swiss Cantonal Court of Zug Switzerland, dissolved and ordered to be liquidated.

SOURCE: BITCOINIST


? CEDEX Secures $50M Worth of Diamonds for ETF

THURSDAY, MARCH 28, 2019

CEDEX, a blockchain-based trading platform, has secured over 6,000 diamonds, worth $50 million dollars, for the launch of its diamond exchange-traded fund (ETF). The platform uses blockchain technology and a proprietary algorithm that allows diamonds to become a tradable asset class like gold, overcoming challenges such as lack of transparency, liquidity and fungibility.

SOURCE: COINDESK


⚡ Zebpay Launches Bitcoin Lightning Network Integration

THURSDAY, MARCH 28, 2019

Zebpay, a Malta-based cryptocurrency exchange, will be the first platform to enable Lightning Network payments for its bitcoin users. Customers worldwide can use their BTC wallet balances through web, iOS, and Android apps to make Lightning transactions. 

SOURCE: DAILYHODL


? Kraken Enforces 2FA and Launches Security Lab

WEDNESDAY, MARCH 27, 2019

U.S. cryptocurrency exchange, Kraken, ramps up its security by making two-factor authentication (2FA) mandatory for users. Currently, the two supported options for 2FA are Google Authenticator and YubiKey.

In their official blog post, Chief Security Officer, Nick Percoco, also announced the formation of Kraken Security Labs. The team will be dedicated to enhancing security of their environments and products. 

SOURCE: COINTELEGRAPH


? Trustology Launches iPhone Crypto Wallet

WEDNESDAY, MARCH 27, 2019

TrustVault, by Trustology, is now available for download from the Apple UK app store. The new iPhone cryptocurrency vault currently only supports ether but bitcoin and ERC-20 tokens will be added soon.

Unlike current typical cold wallets, it boasts a combination of hardware security modules (HSMs) with verification processes distributed among individuals at secure data centres. Users will be able to access funds within a matter of seconds. 

Trustology was founded by a team of technologists that previously worked at financial institutions including BNY Mellon, RBS, and Barclays. The company closed a seed round of $8 million last year. 

SOURCE: COINDESK


⚡ Huobi’s US Arm To Launch Lending, OTC Trading & Stablecoin

WEDNESDAY, MARCH 27, 2019

Huobi Global’s U.S branch, HBUS, is organizing a new team headed by Katelyn Mew to develop solutions for its institutional investors. They will be focusing their time and resources creating services such as token lending, over-the-counter trading, and potential issuance of a Huobi stablecoin. 

SOURCE: COINTELEGRAPH


? DragonEx Crypto Exchange Has Been Hacked

TUESDAY, MARCH 26, 2019

Singapore cryptocurrency exchange, DragonEx, notified its users via Telegram that it suffered a hack. The cyberattack took place on Sunday, March 24 and resulted in theft from users and platform crypto assets. The crypto exchange administrator provided an update identifying 20 wallet addresses to where the stolen assets were transferred to: here

SOURCE: COINTELEGRAPH


? Rakuten Granted License for New Crypto Exchange

TUESDAY, MARCH 26, 2019

Japanese e-commerce giant, Rakuten, has received licenses for its relaunched cryptocurrency exchange, Rakuten Wallet. The license was issued by the country’s Financial Service Agency (FSA), registering it as a virtual currency exchange service provider. Users can sign up for the new service on March 30, 2019

SOURCE: COINDESK


?? Yahoo!-Backed Crypto Exchange to Launch May

TUESDAY, MARCH 26, 2019

Japanese cryptocurrency exchange, Taotao – formerly known as BitARG – is set to launch this May. Taotao is currently 40% owned by a subsidiary of Yahoo! Japan. Taotao will launch two cryptocurrencies on its platform: bitcoin and ethereum. Users will be able to leverage margin positions for ripple, bitcoin cash and litecoin. 

SOURCE: CRYPTOGLOBE


⛓ OKEx Launches New Blockchain Platform & DEX

MONDAY, MARCH 25, 2019

Cryptocurrency exchange, OKEx, announced its latest projects including its new blockchain, OKChain, and decentralized platform, OKDEx.

OKChain is currently in its final stages of development and the testnet is set to launch June 2019. OKEx’s OKB token will start on the ERC-20 blockchain and migrate to the mainnet once it becomes ready. 700 million OKB tokens will be delayed for release between 2020 to 2022.

SOURCE: BITCOINEXCHANGE


? Seed CX Partners with Hydra X To Expand To Asia

MONDAY, MARCH 25, 2019

United States cryptocurrency exchange, Seed CX, has partnered with Hydra X, a Singapore-based FinTech firm, to offer its services in Asia. The integration of Seed CX’s exchange platform with Hydra X’s trading platform, Sigma, will allow users to view prices, trade and monitor their portfolio, as well as gain access to a fiat-cryptocurrency gateway. 

SOURCE: BLOCKTRIBUNE


? eToro Lists Tron

MONDAY, MARCH 25, 2019

eToro, the United Kingdom social trading platform, announced its listing for  Tron (TRX). This announcement comes after the company revealed it is offering its trading service in the United States. The platform currently lists 13 cryptocurrency assets including bitcoin (BTC), ethereum (ETH), ripple (XRP), litecoin (LTC), bitcoin cash (BCH), and stellar (XLM).

SOURCE: COINTELEGRAPH


?  Blockchain Watch: Whale, Hello There

FRIDAY, MARCH 29, 2019
THURSDAY, MARCH 28, 2019
WEDNESDAY, MARCH 27, 2019
TUESDAY, MARCH 26, 2019
MONDAY, MARCH 25, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Investigating Disruptive Patterns of Crypto Exchanges

By | Coinscious Lab, Data Analytics, Exchange Report | No Comments

Overview

Released monthly, this report aims to analyze and characterize cryptocurrency exchanges according to their volume for the past month, this time from January 16, 2019 to February 16, 2019.

Our universe of analysis uses public exchange data from 18 of some of the most popular exchanges1 (see Figure 1). Through analysis of the recent historical volume and price of individual exchanges we provide a framework for analysis where investors can identify better or fairer exchanges.

Using daily volume data from some of the most widely used cryptocurrency exchanges, we were able to cluster exchanges into three groups based on similarity in volume trends. Some of our findings include the following:

  • Fcoin and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Not only does volume and price seem to go against the market, but returns and volume are positively correlated only for Fcoin and HitBTC, while returns and volume are negatively correlated for the rest of exchanges.
  • Although ZB has reported the biggest traded volume in the past month, ZB volume trend patterns were different from the other top exchanges (Binance, HuobiPro, and OKEx). Generally, it showed a low correlation with the market in terms of traded volume.
  • It is also interesting to note that our analysis (Figure 4b. Top 5 positive correlations) accidentally reveals a shared order book between Upbit and Bittrex.

Performance

Figure 1. Total monthly volume, mean daily volume, max daily volume, mean hourly volume and max hourly volume for each exchange from January 16, 2019 to February 16, 2019 in USD. Monitor exchange performance daily through our Market & Trading Strategy Dashboard: dashboard.coinscious.io

According to the public exchange data, ZB has reported the biggest mean daily and hourly volume for the past month. Binance reportedly lost the crown as the king of cryptocurrency by trade volume on December 11, 2018 to be replaced by OKEx, who held the 1st place at that time, while ZB held 2nd [1].

In the past month, ZB has taken the first spot, with a total of 16 billion dollar traded between January 16th to February 16th, compared to 14 billion USD for OKEx (2nd) and Binance (3rd) (see Figure 1).

We then chose ETH/BTC pair to look at the volume more closely and analyze it in more depth. ZB traded volume for ETH/BTC is low during the whole period, with Binance, HuobiPro and OKEx as top exchanges. However, there was a rapid surge on February 11th, when volume changed from $500,000 USD to $67 million USD in one day, and it has remained high since then (see Figure 2). That same day,  according to Etherscan, daily mining rewards for Ethereum fell to their lowest recorded levels [2].

Figure 2. ETH/BTC pair daily volume for each exchange from January 16, 2019 to February 16, 2019 in USD.

Analysis

In order to categorize exchanges and investigate their trends during the past month, we performed a dimensionality reduction analysis using PCA2 for ETH/BTC pair daily volume. By plotting crypto exchanges according to their first two principal components, we could identify a cluster and some outliers (see Figure 3). The two first principal components explain more than 80% of the variance in our data set and the relative position along the x and y axis indicates similarity between exchanges in terms of traded volume. Thus, exchanges clustered together present similar volume trends, while outliers, namely Okex, HuobiPro, Binance, Fcoin, HitBTC, and ZB, show trends that diverge from the market mean.

Figure 3. PCA Volume analysis for ETH/BTC. The biplot, where the two main principal components are used to represent the exchanges allows us to identify clusters or groups of exchanges that might be correlated according to volume.

To understand the meaning of the two principal components and characterize the outliers, we decided to look at correlation between exchanges using volume for the ETH/BTC pair, to identify a general trend in the market and whether exchanges follow or are against the trend (see Figure 5). Although most exchanges show a similar trends (this is, they follow a similar daily volume trend), Bitflyer, ZB, Zaif, Fcoin, and HitBTC show a daily volume trend that goes against the market.

Figure 4a. Top 5 negative volume correlations

Figure 4b. Top 5 positive volume correlations

Figure 5. Daily volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Fcoin in particular shows negative correlations with all exchanges except for HitBTC. This suggests that Bitflyer, ZB, Zaif, Fcoin, and HitBTC are acting against the market. Moreover, it’s interesting to see that Bitflyer, ZB, Zaif, Fcoin, and HitBTC are all based in Asian countries.

On the other hand, Upbit and Bittrex show the highest correlation for all exchange pairs. This similarity in volume is in line with reports suggesting that they share the same order book, although further analysis of blockchain data will be needed to confirm these claims [3].  

To explore what other factors could contribute to the clustering in different groups after Volume PCA, we calculated the correlation between ETH/BTC price and volume for every exchange pair (see Figure 6).

Figure 6. Daily price-volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Again, Fcoin stands out as the exchange with a highest negative correlation between ETC/BTC price and volume for all exchanges showing that, not only the volume, but ETH price is also against the market3. While most exchanges show a positive trend, with high volumes associated to higher prices, Fcoin shows a negative trend, where higher volumes during the analyzed period are associated with lower prices and vice versa.

This raised suspicions that Fcoin might be manipulating price and volume, especially for the pair that we have analyzed (ETH/BTC). Fcoin has been accused of manipulation in the past. In September, a Chinese investor filed a complaint against the exchange, which presumably induced sudden drops in price through manipulation after investing huge amounts in Fcoin token [4].

Finally, if we look at the correlation between returns (instead of price) and volume for ETH/BTC (Figure 7), HitBTC and Fcoin are again the exchanges going against the general trend. High returns in HitBTC and Fcoin are associated with an increase in volume, while high returns elicit a decrease in volume for the rest of exchanges (negative correlation between returns and volume). Interestingly, HitBTC has also been accused of volume manipulation [5].

Figure 7. Daily returns-volume correlations between exchanges from January 16, 2019 to February 16, 2019 for ETH/BTC. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.

Summary

Using daily volume data from 18 of some of the most widely used cryptocurrency exchanges and principal component analysis, we identified three clusters of exchanges sharing similar volume trends. We mainly looked at volume correlations and price-volume correlations. Our findings include:

  • Fcoin and HitBTC go against the market both in terms of volume correlation and price-volume correlation.
  • Not only volume and price seem to go against the market, but returns and volume are positively correlated only for Fcoin and HitBTC, while returns and volume are negatively correlated for the rest of exchanges.
  • Although ZB has reported the biggest traded volume in the past month, PCA analysis separates it from the other top exchanges (Binance, HuobiPro, and OKEx) and show a low correlation with the market in terms of traded volume.
  • It is also interesting to note that our analysis (Figure 4b Top 5 positive correlations) accidentally reveals a shared orderbook between Upbit and Bittrex

Here, these findings are simple observations of possibly correlated variables. We share this from the point-of-view of something to look out for. Overall, our exchange analysis has proven useful to study patterns of volume and price activity in the market and identify potential manipulation, that could be confirmed using blockchain data.

Footnotes

1 The scope of this report does not cover futures contracts.

2 PCA is a technique that finds underlying variables that best differentiates your data points. In this article, we visualize and analyze along the two dimensions which the data points varies the most (see Appendix B).

3 Here, the market is refers to the trend of majority of the exchanges.

APPENDIX A: Methodology

The daily volume of cryptocurrencies in USD at 4:00 PM EST from January 16, 2019 to February 16, 2019 was used for our volume ranking. Daily volume and price for the pair ethereum_bitcoin was used for the same time period for the PCA analysis and correlation analysis. Price and volume were normalized such that its distribution had mean value 0 and standard deviation of 1 in order to perform principal component analysis and calculate price-volume correlations. In subsequent reports, we may update our universe, sectors, methodology, and analysis to reflect new developments.

APPENDIX B: Terminology

  • Correlation: A measure of the linear relationship between two series of random variables, which in the context of finance, can be two series of returns. Correlation ranges between -1 and 1. Correlation close to 1 indicates a more positive relationship between the pair of cryptocurrency returns and correlation close to -1 indicates a more negative linear relationship. Correlation close to 0 indicates no linear relationship.
  • PCA: A statistical procedure that uses an orthogonal transformation to convert a set of observations of possibly correlated variables into a set of values of linearly uncorrelated variables called principal components, in order to maximize the explained variance.

References

[1] T. (2018, December 11). Binance Losses Top Cryptocurrency Exchange Position to OKEX and ZB.Com. Retrieved from https://coingape.com/

[2] Lavere, M. (2019, February 13). Ethereum (ETH) Mining Reward Hits Lowest Ever.  Retrieved from https://ethereumworldnews.com/

[3] Bitking74. (2017, October 24). UPbit and Bittrex are sharing the same order book. This is a win win for both sides: bring some Korean liquidity to Bittrex, also the Korean users start with nicely filled order books from Bittrex. Go NEO. Neotrader [Online forum]. Retrieved from https://www.reddit.com/r/Neotrader/comments/78fztu/upbit_and_bittrex_are_sharing_the_same_order_book/

[4] J. (2018, September 18). Chinese Investor Loses 700,000 Yuan Due To Fcoin Crypto Manipulation. Retrieved from https://www.coindaily.co/

[5] Sillers, A. (2018, September 12). The evidence of OKex’s fraudulent behavior, which may point to HitBTC as well. Retrieved from https://www.chepicap.com/

Disclaimer

The information contained herein is for informational purposes only and is not intended as a research report or investment advice. It should not be construed as Coinscious recommending investment in cryptocurrencies or other products or services, or as a solicitation to buy or sell any security or engage in a particular investment strategy. Investment in the crypto market entails substantial risk. Before acting on any information, you should consider whether it is suitable for your particular circumstances and consult all available material, and, if necessary, seek professional advice.

Coinscious and its partners, directors, shareholders and employees may have a position in entities referred to herein or may make purchases and/or sales from time to time, or they may act, or may have acted in the past, as an advisor to certain companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.

Neither Coinscious or its partners, directors, shareholders or employees shall be liable for any damage, expense or other loss that you may incur out of reliance on any information contained in this report.

Ready, Set, Crypto

By | News | No Comments

⚖ Mt. Gox Close to Settling Creditors’ Accounts

FRIDAY, MARCH 22, 2019

Appointed trustee, Nobuaki Kobayashi, of the now defunct cryptocurrency exchange, Mt. Gox, issued a statement advising that those affected by the crash may see a decision very soon on their reimbursement plan. The expected settlement will be available in cryptocurrency or cash. Kobayashi has approved claims for 802,521 BTC (worth $3,233,256,500), 792,296 BCH ($124,953,000), $38,165,664 in USD and other fiat currencies as stipulated in this document.

SOURCE: CRYPTOVEST


✂  BlockFi Cuts Interest Rates Paid to 2% For Its Large Accounts

FRIDAY, MARCH 22, 2019

A few weeks after launching, BlockFi, the cryptocurrency lending startup, has just changed the terms of their interest-bearing deposit account. The company stated in their official blog post that starting April 1, 2019 any accounts with more than 25 BTC or 500 ETH, they will only pay 2% on the amount deposited instead of the originally advertised 6%. Zac Prince, CEO and founder, advised the change is due an unexpected and overwhelmingly large demand from institution clients to deposit more than one million dollars worth of cryptocurrency. BlockFi raised $25 million in the last two weeks alone.

SOURCE: COINDESK


?Bayer Crop Science Partners With ConsenSys’ BlockApps

FRIDAY, MARCH 22, 2019

Pharmaceutical giant, Bayer, and its German-based agricultural division, Bayer CropScience, have teamed up with startup BlockApps, backed by ConsenSys. The partnership was said to have begun early 2018 and they’ve been working on a number of blockchain initiatives to improve operation and the industry. Bayer CropScience was formerly known as Monsanto, the highly controversial agricultural company, before its acquisition.

SOURCE: COINTELEGRAPH


⚡ Huobi Global & OKEx Supports Tron-based USDT

THURSDAY, MARCH 21, 2019

Major cryptocurrency exchanges, Huobi Global and OKEx, have separately announced that they will be supporting the TRC20-based USDT stablecoin, USDT-TRON,launched by TRON and Tether. The new token will be operable with all Tron-based protocols and decentralized applications, improving liquidity in the ecosystem.

SOURCE: COINTELEGRAPH


? Square Hiring Crypto Engineers

THURSDAY, MARCH 21, 2019

CEO of Twitter and Square, Jack Dorsey, announced Square Crypto is seeking to hire three to four cryptocurrency engineers and one designer to build its upcoming crypto ecosystem. Dorsey has become a strong public proponent of bitcoin and cryptocurrency in the recent months. This initiative brings further optimism to the cryptocurrency community and the blockchain industry.

SOURCE: CCN


⛔ CBOE Discontinues Bitcoin Futures

WEDNESDAY, MARCH 20, 2019

The Chicago Board Options Exchange (CBOE), the first exchange to list bitcoin futures, has decided to stop listing the very same product. CBOE stated that it has not fully closed the door on cryptocurrency, but does not intend to list additional bitcoin futures for trading at the moment due to decreased demand.

SOURCE: FORBES


? Coinmarketcap Launches Crypto Indices on Nasdaq, Bloomberg and More

WEDNESDAY, MARCH 20, 2019

CoinMarketCap, announced it will launching two cryptocurrency benchmark indices on Nasdaq Global Index Data Service (GIDS), Bloomberg Terminal, Thomson Reuters Eikon (Refinitiv), Germany’s Börse Stuttgart, and its own platform. The indices cover the top 200 by market capitalization. The first index, CMC Crypto 200 Index (CMC200), includes bitcoin and covers more than 90% of the cryptocurrency market. The second index, CMC Crypto 200 ex BTC Index (CMC200EX) does not include bitcoin, in order to track market performance without its influence. 

SOURCE: COINDESK


⚡ Huobi Launches Token Sale Platform

WEDNESDAY, MARCH 20, 2019

Singapore cryptocurrency exchange, Huobi Global, announced on its blog that Huobi Prime, a dedicated token sale platform. The new platform is geared towards both large and small investors and allows individuals access to new altcoin tokens before they appear on major exchanges. The first project to launch is TOP and will take place on March 26, 2019

SOURCE: COINTELEGRAPH


? Cryptopia’s Trading Service Resumes After Hack

WEDNESDAY, MARCH 20, 2019

New Zealand cryptocurrency exchange, Cryptopia, announced it is resuming its trading service after its hack mid-January. An estimated of 9.4% of the exchange’s total holdings were stolen. Currently, 40 trade pairs have been evaluated as secure and this list will continue to grow as Cryptopia clears more coins. See the full list: here

SOURCE: COINDESK


?? Purchase Bitcoin Down Under With Binance Lite

TUESDAY, MARCH 19, 2019

Cryptocurrency exchange, Binance, has expanded its Binance Lite fiat gateway to Australia. 1,300 newsagent stores will be ready and allow customers to buy cryptocurrency with regular fiat money. In order to use this service, customers will need to pass account verification, including Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

SOURCE: THENEXTWEB


?? Switzerland’s Largest Online Retailer Accepts Bitcoin

TUESDAY, MARCH 19, 2019

Digitec-Galaxus, Switzerland’s “Amazon”, is now accepting bitcoin (BTC) and other cryptocurrencies as payment. Co-founder & Chief Innovation Officer, Oliver Herren, says the company’s move to accept this form of payment method is to target a more tech-savvy audience and position itself as a forward-thinking company. The large online retailer has partnered with Coinify to process all cryptocurrency transactions. 

SOURCE: BITCOINIST


? Fortune 500 Company Accepts Crypto Payments

TUESDAY, MARCH 19, 2019

Fortune 500 company Avnet, one of the largest electronic components distributors worldwide, announced it will now accept bitcoin (BTC) or bitcoin (BCH) as payments for its products and services. Avnet partnered with payment platform, BitPay, who will aid with verifying funds, processing orders, and completing transactions.

SOURCE: ETHNEW


? IBM Signs 6 Banks Ready To Issue Stablecoin

MONDAY, MARCH 18, 2019

IBM officially launches its real-time global payments network, Blockchain World Wire (BWW), in collaboration with Stellar (XLM) is now live. IBM and Stellar announced that six international banks have signed up to issue their own stablecoins on the blockchain-powered payments network. BWW currently supports more than 47 currencies for payments across 72 countries.

SOURCE: COINTELEGRAPH


✋ Bitcoin Futures On the Bakkt Burner

MONDAY, MARCH 18, 2019

The highly anticipated bitcoin futures market, Bakkt, by Intercontinental Exchange (ICE) has yet to receive regulatory approval from the Commodity Futures Trading Commission (CFTC). ICE originally intended to launch the platform in mid-December, but has since delayed the project indefinitely.

SOURCE: COINDESK


? Blockchain Watch: Whale Hello There

WEDNESDAY, MARCH 20, 2019
TUESDAY, MARCH 19, 2019
MONDAY, MARCH 18, 2019

SOURCE: TWITTER


Images courtesy of Shutterstock

Crypto Launches & Previews

By | News | No Comments

? Bittrex Cancels Its First Initial Exchange Offering

FRIDAY, MARCH 15, 2019

Crypto trading platform, Bittrex International, has cancelled its first public Initial Exchange Offering (IEO) for RAID tokens intended to take place today.  The decision came after Bittrex learned startup RAID ended its vital partnership with e-gaming data analytics company, OP.GG. In a swift move to protect its users, the IEO to raise $6 million dollars was cancelled hours before its launch. It still remains unclear the true relationship between RAID and OP.GG as statements from both parties conflict one another. 

SOURCES: CCN, BITTREX


⚖ Mt. Gox CEO Receives Suspended Jail Term

FRIDAY, MARCH 15, 2019

The Tokyo District Court found Mark Karpeles, the former CEO of the now dissolved cryptocurrency exchange, Mt. Gox, guilty of tampering financial records, but innocent of embezzlement and breach of trust. Karpeles was given a suspended sentence of two and a half years, and will not have to serve jail time provided he does not commit another violation within 4 years. 

SOURCE: BLOOMBERG


? SEC Not Likely to Approve Bitcoin ETF Any Time Soon

FRIDAY, MARCH 15, 2019

During CoinDesk’s Consensus: Invest event yesterday, Jay Clayton, the chairman of the United States Securities and Exchange Commission (SEC) highlighted key stances U.S. regulators currently have on the cryptocurrency space. Major takeaways from Clayton’s panel discussion include:

  1. bitcoin exchange traded funds (ETF) not likely to be approved soon
  2. regulated exchanges are needed to prevent price manipulation
  3. crypto trading requires anti-money laundering protections
  4. ICO-funded startups should go see the SEC, and
  5. courts may see ICO’s differently than regulators.

SOURCE: COINDESK


? USDT Not Entirely Backed By Fiat

THURSDAY, MARCH 14, 2019

Tether has quietly updated their website terms stating that the dollar-peggedstablecoin, USDT, is backed 100% by “reserves”, not only fiat. These reserves collectively consist of traditional currency, cash equivalents, and other assets and receivables from loans made by Tether to third parties. 

SOURCE: COINDESK


? Nasdaq Licences Framework to Cryptocurrency Ecosystem Developer

THURSDAY, MARCH 14, 2019

Nasdaq, has licensed its Nasdaq Financial Framework to Bcause, a cryptocurrency trading platform. Bcause will leverage Nasdaq’s technology for its spot trading activities such as clearing and “market surveillance.” Bcause’s spot market is set to launch during H1 2019.

SOURCE: BITCOIN.COM


? Thai Stock Exchange To Launch Digital Asset Platform in 2020

THURSDAY, MARCH 14, 2019

The Stock Exchange of Thailand (SET) confirmed it is building a digital assets platform that is set to launch in 2020. President of SET, Pakorn Peetathawatchai, advised the platform is part of their 3-year strategic plan between 2019-2021, focusing on developing infrastructure and a “one stop” digital capital market. 

SOURCE: COINTELEGRAPH


? Coinbase Pro Lists Stellar Lumens

THURSDAY, MARCH 14, 2019

Coinbase Pro has added support for Stellar Lumens (XLM), the eight largest cryptocurrency by market capitalization. XLM trading will go through three stages – “transfer-only,” “post-only,” and “limit-only.” – before the fourth “full trading” stage commences. More details can be found on their official blog post

SOURCE: COINTELEGRAPH


➡️ Coinbase Completes First OTC Trade From Cold Storage

WEDNESDAY, MARCH 13, 2019

Coinbase Custody has successfully conducted its first over-the-counter trade (OTC) directly from cold storage. On their blog, the cryptocurrency exchange stated that Custody is now directly integration with the OTC desk at Coinbase Pro and allowed for the completion of the OTC trade. Coinbase’s OTC desk launched quietly last year and its services are offered to accredited investors in the U.S., Asia, and Europe.

SOURCE: BITCOINEXCHANGEGUIDE


⚖ QuadrigaCX’s CEO Used Personal Funds During 2018 Litigations

WEDNESDAY, MARCH 13, 2019

Gerald Cotten’s widow, Jennifer Robertson, revealed that the CEO of the Canadian crypto exchange, QuadrigaCX, had put personal funds into the exchange during its legal battle with the Canadian Imperial Bank of Commerce (CIBC) in 2018. The major bank froze five accounts holding a total of $21.6 million and as such Cotten needed a way to fund customer withdrawals. 

SOURCE: COINDESK


? Binance’s Trust Wallet Now Supports XRP & Credit Card Payments

TUESDAY, MARCH 12, 2019

Trust Wallet, the official wallet of cryptocurrency exchange, Binance, now supports Ripple’s XRP token and credit card purchases. The wallet also currently supports bitcoin (BTC), ethereum (ETH), litecoin (LTC), bitcoin cash (BTC) as well as ethereum-based tokens such as ERC20, ERC223 and ERC 721. Users can now buy crypto directly with their credit cards, with payment being processed by Simplex. More details to be revealed on which major credit and debit cards will be accepted and if there are any fees associated.

SOURCE: COINTELEGRAPH


? Bittrex To Conduct Its First Initial Exchange Offering

TUESDAY, MARCH 12, 2019

Crypto trading platform, Bittrex International, will be launching its first public Initial Exchange Offering (IEO) through its platform on Friday, March 15. Bittrex users will be able to use bitcoin (BTC) to purchase RAID (XRD) tokens. There will be a hard cap of 17 billion XRD, worth $6 million dollars. RAID is a South Korean startup that is developing a blockchain-powered game data ecosystem. Full details of the IEO can be found here

SOURCES: CHEPICAPBITTREX


? SEC Agrees With Analysis: Ether Is Not A Security

TUESDAY, MARCH 12, 2019

U.S. Security and Exchange Commisison (SEC) chairman, Jay Clayton, confirms staff analysis that ethereum and similar decentralized digital assets are not securities. In a letter to U.S. House representative, Tedd Budd, Clayton did not directly reference any specific cryptocurrencies, but rather stated he agreed with William Hinman, the SEC Director of Division of Corporate Finance, and his securities classification of crypto assets from June 2018.

SOURCE: CCN


?Ledger Reports On Trezor Wallets Vulnerabilities

MONDAY, MARCH 11, 2019

Ledger, the French hardware wallet manufacturer, released a report on the vulnerabilities of wallets from its direct competitor, Trezor. The report investigates the weaknesses of wallets Trezor One and Trezor T and highlights features that them susceptible to cyberattacks. The five vulnerabilities analyzed are: 

  1. Genuineness of the device
  2. Secure PIN protection
  3. Confidentiality of data inside the Trezor One
  4. Confidentiality of data inside the Trezor T
  5. Analysis of the cryptographic stack

SOURCES: COINTELEGRAPHLEDGER


? Kakao’s Blockchain Unit Raises $90M

MONDAY, MARCH 11, 2019

Ground X, the blockchain unit of South Korean messaging giant, Kakao Corp ,raised $90 million dollars through a private coin offering. Ground X has partnered with 26 companies – including game developer Wemade, video-streaming service Watcha, and unit of travel agency Zanadu – to run applications on their platform. The platform is set to launch in June. 

SOURCE: COINDESK


? ‘Facebook Coin’ Could Generate $19B Revenue

MONDAY, MARCH 11, 2019

Barclays’ analyst, Ross Sandler, says the launch of Facebook’s digital currency, Facebook Coin, could add $19 billion dollars in revenue by 2021.  Sandler asserts that this will be a huge opportunity for the company to grow especially with the inclusion of a payment method for its premium content. Facebook currently has 3 million users, but the crypto community remains divided by the social media giant’s potential launch into the crypto space.

SOURCE: NEWSBTC


⚡Blockchain ETF Live on London Stock Exchange

MONDAY, MARCH 11, 2019

Invesco, partnered with London-based investment firm, Elwood Asset Management, to launch a blockchain exchange traded fund (ETF) on the London Stock Exchange. The new product, “Invesco Elwood Global Blockchain UCIT ETF,” targets companies with potential to generate real earnings from blockchain technology. 

SOURCE: COINDESK

Image courtesy of Wealth Management


?Samsung Galaxy S10 Wallet Supports ETH, ERC20 Tokens, dApps, But Not BTC

MONDAY, MARCH 11, 2019

 The Samsung Blockchain Wallet on the upcoming Galaxy S10 phone will not support bitcoin (BTC), despite pre-released images. Currently, the native wallet is only compatible with ethereum (ETH) and other ethereum-based ERC20 tokens. At launch, the wallet will also support 4 decentralized apps: Enjin, Cosmee, CryptoKitties, and CoinDuck

SOURCE: COINDESK


?  SIX May Soon List Ripple (XRP) ETP

MONDAY, MARCH 11, 2019

Swiss stock exchange, SIX, may soon introduce ripple (XRP) exchange-traded product (ETP) following the now live bitcoin ETP and ethereum ETP tickers, ABTC and AETH, respectively. Amun AG, the crypto firm responsible for the existing crypto ETP listings on SIX, say they’re optimistic XRP ETP will be launched within the next two months under the ticker AXRP.

SOURCE: CHEPICAP


? Blockchain Watch: Well, Well, Whale

FRIDAY, MARCH 15, 2019
THURSDAY, MARCH 14, 2019

Over 27.9M XRP moved worth $8.8 million dollars

WEDNESDAY, MARCH 13, 2019
TUESDAY, MARCH 12, 2019
MONDAY, MARCH 11, 2019

SOURCE: TWITTER


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